NEW YORK (GenomeWeb) – In a filing with US Securities and Exchange Commission today, CareDx said it has entered into an agreement with investment bank Jefferies to sell up to $50 million in shares of its common stock from time to time.
Jefferies, which is acting as CareDx's agent and underwriter in the sale, will be entitled to compensation at a commission rate of up to 3 percent of the gross sales price of the shares sold under the agreement.
The firm said it intends to use the net proceeds from the offering for working capital and general corporate purposes, including capital expenditures, research and development, clinical trials, acquisitions of new technologies, investments, and the repayment, refinancing, redemption, or repurchase of indebtedness or capital stock.
CareDx closed an $18.3 million public offering a year ago, just before it launched its organ transplant diagnostic AlloSure. In May, the company signed a licensing and commercialization agreement with Illumina for the worldwide distribution, development, and commercialization rights to Illumina's next-generation sequencing transplant clinical application products — CareDx is using that access to develop three new kitted transplant products under the brand name AlloSeq.
CareDx's shares rose nearly 5 percent to $23.22 in morning trading on the Nasdaq.